Our Commitment to Bridging the Gap in Small Business Lending

The California State Loan Guarantee Program has been in operation since 1968 and currently administered by the California Infrastructure & Economic Development Bank residing under the Governor’s Office of Business & Economic Development through 7 non-profit Small Business Financial Development Corporations located in rural and urban areas throughout the state.

Last fiscal year the Program created or retained 15,598 jobs for Californians, by providing the funding necessary for start-up businesses, and small businesses experiencing growth or needing to expand. A total of 846 businesses that would not have qualified for financing, succeeded in obtaining financing through the California State Loan Guarantee Program.

The loan guarantee program was funded by grants from the State Legislature that established a trust fund to secure bank loans or lines of credit for small businesses in need. The Program creates jobs and opportunities for small businesses, including those owned by minorities, women, and the disabled.  Most importantly, the Program allows businesses to not only obtain a loan, but to establish a favorable credit history with a lender. Having established this, the business may obtain future loans on its own without the assistance of the program, providing the ingredients necessary for long-term success.